Singapore shares rose to a one-year high, buoyed by strong corporate profits from U.S. bellwethers such as Intel Corp , but Fraser and Neave Ltd (F&N) underperformed the broader market on reports that Thai Beverage will buy a stake in the conglomerate.
The benchmark Straits Times Index was up 0.5 percent at 3,031.72 points, led by property developer City Developments Ltd's 2.3 percent gains.
However, shares of F&N fell as much as 3 percent to a one-week low at S$7.72. About 2.8 million shares changed hands, compared to its full day average volume of 3.3 million over the last five sessions.
"It seems like there's not going to be a general offer for F&N now, which is what the market was hoping for," said a local trader.
Thai Beverage, controlled by tycoon Charoen Sirivadhanabhakdi, said it has agreed to buy a 22 percent stake in F&N from Oversea-Chinese Banking Group, its insurance unit and the Lee family, which is the banking group's biggest shareholder.
1242 (0442 GMT)
(Reporting by Charmian Kok in Singapore; email@example.com)